Interest in uranium companies expected to increase
Thursday, 05 May 2011 09:40
A resource analyst says Australian uranium companies could be targeted by Chinese investors, following a fall in uranium share prices.
Shares for uranium companies have fallen dramatically following the nuclear crisis in Japan.
Australia has the world's largest uranium reserves.
Analyst Gavin Wendt says Chinese investors are looking to secure resource stocks in countries such as Australia while prices are low.
"I think we could well see interest by the Chinese, particularly in Western Australia," he said.
"There are five projects in WA that are slated for development, they will be coming on stream in the next five to six years, they could well see Chinese interest."
Mr Wendt says Australia holds the biggest reserves of uranium in the world.
"There are going to be more discoveries now that exploration has been freed up, now that development in WA is now on track there is going to be much more interest," he said.
Source: abc.net.au